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Forward Sale Contracts
12 Months Ended
Sep. 30, 2011
Forward Sale Contracts [Abstract]  
Forward Sale Contracts

NOTE 7 – FORWARD SALE CONTRACTS    

     During fiscal 2006 and 2007, Ralcorp entered into forward sale contracts relating to 4.95 million shares of its Vail common stock with maturity dates ranging from November 21, 2008 to November 15, 2013. Ralcorp received a total of $140.0 under the discounted advance payment feature of the contracts. Amortization of the $44.1 discounts was included in "Interest expense, net" on the statement of operations and totaled $5.1 in 2009. In fiscal 2009, all contracts were settled and Ralcorp delivered 3,503,263 shares.

     The forward sale agreements had a dual nature and purpose. The advance proceeds component acted as a financing arrangement collateralized by the underlying Vail shares. The derivative component, which was based on a price collar on Vail shares, acted as a hedge of the future sale of the underlying shares. Because Ralcorp accounted for its investment in Vail Resorts using the equity method, these contracts were not eligible for hedge accounting. Therefore, any gains or losses on the contracts, whether realized or unrealized, were immediately recognized in earnings.